Publicly-listed EV Metals Group (EVM) has announced to the Australian Securities Exchange that it has launched the Australian Lithium Alliance to partner with Australian companies “to accelerate exploration, development, mining, processing and production of lithium minerals”.

The alliance will supply EV battery minerals “as an alternative to Chinese companies that currently dominate the purchase of spodumene concentrate from Australia to supply chemicals processing companies in China”.

“EVM is building a global battery chemicals and technology business with the development of the world’s first integrated battery chemicals complex (BCC) at Yanbu Industrial City in the Kingdom of Saudi Arabia,” the ASX statement said.

“It will produce high purity chemicals containing lithium, nickel, cobalt, manganese and other metals required for high energy density cathode active materials used in rechargeable lithium-ion batteries for electric vehicles and renewable energy storage.”

EVM chairman Abdullah S. Busfar said the alliance would “secure the upstream integration of supply chains for critical raw materials required to fast track the development of the BCC in the Kingdom”. 

“The BCC is being developed as a midstream and downstream global hub for production of high purity chemicals and cathode active materials for domestic and export sales to original equipment manufacturers and battery cell manufacturers in growth markets in Europe and North America seeking stable, long term, independent and transparent supply chains as structural deficits emerge in lithium after 2025,” he said.

EVM is developing two processing trains requiring initially 330,000 tonnes per annum (tpa) of spodumene concentrate containing six per cent lithium oxide (SC6) to produce 50,000 tpa of lithium hydroxide monohydrate (LHM) at the BCC in Saudi Arabia. 

The BCC has been designed for expansion with a further two trains requiring a further 330,000 tpa of SC6 for the production of a further 50,000 tpa of LHM. 

EVM launched the formation of the alliance with details of an agreement in the form of an earn-in joint-venture and lithium rights deed (agreement) between EVM, ALA, Zenith Minerals Ltd (ZNC) and ZNC subsidiary Black Dragon Energy (Aus) Pty Limited. 

The agreement includes an undertaking that EVM will conduct a feasibility study, including a $7 million spend on exploration, at two ZNC sites in Western Australia. The sites are Split Rocks, south of Southern Cross, and Waratah Well, 190km east of Geraldton.

EVM will also enter into a life-of-mine offtake agreement for all production of lithium oxide from all lithium minerals projects developed by the Zenith Lithium Joint Venture. 

EVM managing director Michael Naylor said: “The aim is for the Australian Lithium Alliance to build the Zenith Lithium Joint Venture into the largest producer of Lithium Minerals in the form of spodumene in Australia”. 

“EVM will work with ZNC through the Australian Lithium Alliance to develop ZNC as a pure Lithium Minerals company and leading producer of lithium oxide, the preferred feedstock for the production of lithium monohydrate by the Lithium Chemicals Plant in the Battery Chemicals Complex. 

“ZNC and the Zenith Lithium Joint Venture are strategically positioned to access the first two trains of LHM in the Lithium Chemicals Plant which are scheduled for commissioning in the second half of 2024.”

BYD secures lithium supply on Chile

In other lithium news, the Chilean arm of Chinese EV-maker BYD has won one of two (of five) Ministry of Mining quotas for a total of 400,000 tons of marketable metallic lithium (MML) through a national and international public tender process.

The two awarded quotas represent 1.8 per cent of the known lithium reserves in Chile.

BYD Chile, a subsidiary of China’s BYD, said it had made the highest offer of $US61 million ($A85 million), winning a quota of 80,000 tons.

BYD’s Chilean manager Tamara Berrios said in a statement: “It is great news that Chile, one of the countries with the largest lithium resources globally, plans to meet the increased global demand for lithium and projected future growth”.

“We have introduced the first pure electric bus fleet with lithium batteries in Chile. We hope to contribute to the local lithium market with 27 years of experience in battery technology. 

“Our R&D in the battery industry will strengthen Chile’s sustainable and innovative development, both for its national mining industry and the different communities in the country.”

By Neil Dowling